Credit Cards

The Best Gas Rebate Credit Card Right Now

Comments 0 Comments

Best Gas Rebate Credit CardThe best card–at this moment–to earn rewards on gas purchases is the PenFed Platinum Rewards credit card.

[Free Resource: Check your credit for free before applying for a credit card]

Now, this is the best card to save money on gas alone. I’m focusing on one aspect, and if you have a long commute, saving money on gas might be your number one concern right now. I’m not a mathematician (and anyone who knows me well can confirm this) so I took a very simple example and ran some numbers.

Let’s say you spend $5,000 in a calendar year on gas. You get 5 points per $1 spent on gas purchases. So you’ll earn 25,000 points on gas purchases, which translates into $250. If you spend $1,000 within the first three months, you get 20,000 additional points. That’s worth $200 in rewards. Just for fun, let’s add that to the $250 you save on gas purchases.

[Credit Cards: Research and compare gas credit cards at Credit.com]

FREE TOOL:
CHECK YOUR CREDIT

Credit.com’s Credit Report Card
Check your credit bureau profile for free with this great tool. See your detailed credit evaluation, expert advice on managing your credit, and unlimited free updates every 30 days.
Get Started Here »

We’re now at $450, but we also have to subtract the $15 donation you’ll have to pay to join PenFed. Now you’re looking at $435 you can apply toward even more gas purchases or something that might be fun, like a vacation.

You also get 3 points per $1 on grocery purchases and 1 point per $1 on everything else. There’s no annual fee, either, to cut into your profits. I wrote a blog about this card last month so you can get the details here.

This is a rewards points card so it’s not as straightforward as cash back cards, where you get a credit on your statement or a check in the mail. With this PenFed card, you can redeem your points for merchandise, entertainment, and more.

But you also can get “cash back” in the form of a PenFed Prepaid Visa card in increments of $50, $100, $250, or $500. Each point is worth 1 cent so you need 5,000 points to get a $50 prepaid card and so forth. I confirmed with PenFed that there are no fees associated with the use of this prepaid card. So, yes, it’s as good as cash.

I used the same scenario with a dozen of the best gas rebate cards on the market right now. This PenFed card came out on top easily. But if you’re looking for a more general rewards card that offers savings on gas, take a look at the first runner-up.

A close second: The Chase Freedom Visa – $200 Bonus Cash Back credit card gives you 5 percent cash back on up to $1,500 in rotating categories. Gas purchases are in the rotation twice a year. Since the savings isn’t spread out evenly throughout the year, your savings will depend on how much you spend within a three-month period. You also get 1 percent on all other purchases, including gas when it isn’t offered in one of the quarterly categories.

[Free Resource: Check your credit for free before applying for a credit card]

The current 5 percent on gas is only available through the end of March. But you get 5 percent cash back on gas again starting in July and lasting through September.

Image: ^riza^, via Flickr

Find out where you stand.
Get your FREE personalized credit report card.

Sign Up Now
X

Stay connected to our experts

Please submit your email address to get credit & money tips & advice
from our team of 30+ experts, delivered weekly to your inbox.